Abstract:

This case study outlines in great detail a mid-range chocolate manufacturer that rolled out SAP S/4HANA Production Planning (PP) and AGI Warehouse Management System (WMS) as well as a Laboratory Information Management System (LIMS). The rollout was undertaken to eradicate repeating production backlogs, inventory inaccuracies, and quality problems that previously were driving the company out of millions of dollars annually. Through real-time coordination of planning, production, and quality inspection, the company achieved a 92% reduction in time to clear backlog, a 35% improvement in inventory accuracy, and a 20% reduction in rework. Analysis of return on investment indicated annual savings in the range of $2.5–3.0 million based on retailer penalty avoidance, scrap and rework reduction, labor productivity improvement, and improved promotional compliance. Seasonal demand planning demonstrated how the integration enabled the company to balance Easter and Christmas spikes without penalty or freight fees. The study offers a practical blueprint for food manufacturers who want operations excellence in the era of Industry 4.0.